Hiring is more competitive than ever. Engaging employees from a foreign country like Denmark adds to the challenge. You need to contend with language barriers (if you don't speak Danish) and unfamiliar local employment laws. We have a solution that can streamline your hiring process in Denmark– an Employer of Record (EOR).
Why Hire Talent in Denmark
Denmark is home to a population of highly team-oriented and skilled workers. Danes encourages all members of a team to pitch their ideas and work collaboratively.
A majority of Danes (86%) speak English as a second language. Since it is mandatory for Danish students to learn English starting in elementary school in the public system, you can expect strong English speakers with a high level of experience.
Denmark’s code of conduct is generally informal, however, you should make sure to be on time when working with your Danish distributed team. Danish culture focuses on punctuality as a sign of respect and it is emphasized to be on time when working on deadlines or attending meetings.
How To Legally Hire Employees from Denmark
To hire from Denmark, your company needs to have a legal entity operating in the country. Getting an entity set up can be time-consuming and costly. The efforts are only worth it if you intend to dramatically expand your business into the Danish market in the long term.
An Employer of Record like Borderless AI can be an invaluable resource when it comes to hiring employees in Denmark. Not only can they help you navigate complex labor laws and regulations, but they can also offer a range of services to support your business operations.
The Benefits of Using An EOR
For companies hiring in Denmark, an EOR offers many benefits. You can fast-track the hiring process because Firstly, an EOR can fast-track the hiring process, as they already have an established legal and administrative framework in place.
Compliance is particularly important in Denmark, where labor laws are strictly enforced. Employers who violate employment laws can face serious financial penalties and business disruptions. Using an EOR ensures that your company is legally compliant, avoiding unexpected surprises and negative impacts on your reputation.
Danish Employment Contracts and Documentation
In Denmark, employees must be provided with a formal job contract that clearly lays out their terms of employment. Under Danish law, the employer is required to produce a contract for the employee in writing at most one month after the start of their employment, provided the employee will be working for more than one month and at least eight hours a week. In Denmark, 37 hours per week is considered full-time employment.
Foreign workers in Denmark are generally entitled to the same employment rights as Danish citizens.
Vacation, Breaks, and Holidays
On the cultural front, Denmark observes several national and civic holidays you should consider when building your distributed team.
Danes celebrate:
- January 1: New Year's Day
- March 28: Palm Sunday
- April 1: Maundy Thursday
- April 2: Good Friday
- April 4: Easter Sunday
- April 5: Easter Monday
- April 30: General Prayer Day
- May 13: Ascension Day
- May 23: Whit Sunday
- May 24: Whit Monday
- June 5: Constitution Day
- December 25: Christmas Day
- December 26: Boxing Day
- December 31: New Years’ Eve
Taxes and Payment
There is no official Danish minimum wage, but generally, a minimum of around 110 Danish Krone (DKK), or around $16.60 USD, per hour is an informally agreed-upon standard.
Denmark also operates under the Danish labor-market model, also known as “flexicurity,” which ensures a flexible and secure structure for employees and employers alike.
Now that you know the basics of Danish labor customs, standards of living, and lifestyle, keep reading for a step-by-step on bringing your new Danish team on board.
Step 1: Determine Your Hiring Needs
To ensure a successful hiring process from Denmark with EOR, it is essential to start with a clear idea of the positions you need to fill, the skills required, and the type of employment contract. This will guide the rest of the process and ensure that you are identifying candidates that meet your business needs.
Step 2: Choose an EOR
It is crucial to research the EOR providers that have legal entities in Denmark and select one that meets your company’s specific needs. Look for a provider who offers comprehensive services, pricing transparency, and a proven track record of compliance.
Step 3: Define Employee Onboarding and Management Process
Once your EOR is in place, establish a streamlined onboarding process for your new hires that includes employee management policies, job performance standards, and disciplinary procedures. Ensure that all practices are legally compliant.
Step 4: Select and Interview Qualified Candidates
EORs won't help you source candidates, so you're responsible for conducting interviews to ensure that you are selecting the right people for your team.
Step 5: Maintain Effective Communication and Record-Keeping
Maintain clear communication with your EOR and your new hires, and keep accurate records of all employment-related data and transactions.
How Borderless AI Can Help
As an Employer of Record (EOR), Borderless AI is an excellent solution for companies looking to hire in Denmark. By outsourcing your hiring tasks to a third-party provider like Borderless AI, your company can save time and money.
Book a demo with Borderless AI today to see how we can help you build your team in Denmark!
Disclaimer
Borderless does not provide legal services or legal advice to anyone. This includes customers, contractors, employees, partners, and the general public. We are not lawyers or paralegals. Please read our full disclaimer here.
